Personal Insolvency

personal insolvency

Personal insolvency is the complicated process when the person or company fails and is unable to repay his debts; involving various areas of law including loans, rents, mortgage, tax on employment, property and more which makes an individual and company “insolvent”. 

Personal Insolvency Law

When you are struggling to pay the money, you owed or any type of debt, you need the help of legal consultants and lawyers. The law of the UAE regarding personal insolvency provides enough protection and legal assistance to debtors who are facing financial distress and are facing financial difficulties. Under the insolvency law, the debtor facing financial distress and financial difficulties may apply to the court to seek legal assistance and guidance for the settlement of the debts and other financial commitments. This legal assistance is sought through the help of experts; appointed by the court and is supervised by a court settlement plan. If the court accepts the request of the debtor, the effective moratorium is placed which does not allow the creditor to seize any of the debtor’s assets, provided those assets are not the subject of pledge.

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According to rules and regulations of personal insolvency in UAE, the settlement plan must not exceed 3 years and must protect the rights and interests of creditors as well. The appointment expert by the court can make such an acceptable plan to replace the security with another security, provided that the replaced security and plan achieves the interests of the creditors. However, if the creditor rejects the plan and replaced security, the expert submits the request to the court. The court in the UAE has discretion on whether to accept or approve the settlement plan keeping in view the harms and interests of creditors. In case, the court rejects the settlement plan provided by the expert decision will immediately initiate liquidation proceedings under the law.


For Borrowers

The personal insolvency experts and attorneys aid while representing the borrowers. The main objective behind this is to meet the realities and requirements of borrowers while keeping in mind the financial situation by restructuring the terms and conditions of debts. The acceptable and suitable solution is provided by the insolvency experts in UAE, as they have wide experience and can think out of the box advice for both parties. The process is time saving for debt settlements, if the solution is palatable for both borrower and lender. This will also save the cost associated with the whole complicated procedure. In case of no mutual agreement the case is taken to court.

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For Lenders

The main aim of lawyers and legal consultants behind representing the lenders is maximum recovery and providing the best advisory on the course of action. The experts analyze the short-term and long-term consequences and impact of possible outcomes keeping in view the past dealings of the borrowers. The expert attorneys in UAE tries to come on an acceptable solution and advice for lender and borrowers convincing the lenders to wait for a longer period on some terms and conditions according to the law. If no party agrees to any plan, the court proceedings shall begin.

Personal Insolvency Lawyers in United Arab Emirates

The insolvency lawyers handle all the matters professionally and with compassion & care. The lawyers aid in preparing all the required documents from the start of the case and pass the case to paralegals for further proceedings. In UAE, every case is equally important to insolvency lawyers and they make sure that you get the best possible and best outcome for every case. Clients will receive professional guidance throughout the case from insolvency experts in the UAE. UAE has an expert team of attorneys and legal consultants for personal insolvency cases, with an extensive experience of many years in the field. The lawyers are experts in finding the acceptable solutions and settlement plans for creditors and debtors from cash flows to debt collection and other insolvency legal matters. The insolvency experts and legal consultants who are offering their services in multiple firms of UAE have in-depth knowledge and experience to cater and manage all types of insolvency issues. They are experienced to advise on multiple insolvency matters and knowledgeable in providing tailored solutions according to the needs of the clients. They are aware of the sensitivity of the matter and the fact that the insolvency issue is very time-sensitive and critical for both lenders and the insolvent and there is no one time fit solution for all the financial problems, but make sure to provide the best possible and acceptable solution. They provide exceptional services in the UAE, regardless of the complexity of the situation. 

Our Services include

The lawyers and experts in the UAE provide services and advice on the following matters:

  • Resolving disputes
  • Preparing the acceptable debt management plan
  • Understanding asset and liability profiles of debtors
  • Dealing with investigations of local authorities
  • Avoiding insolvency if you are in financial distress
  • Going through the formal and informal process of insolvency, debt restructuring and administration
  • Recovering the money owed by insolvent persons
  • Negotiating the settlement plan between debtor and creditor
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